Board 8 > Stock Topic 14

(+) Yeah! (+)

Side note I think I lucked into collateral damage here. I have a bunch of far out calls on IVR since they were dirt cheap and I felt like it could recover to the $5-$6 range in a year or two. IVR is currently up about 30% on the week and I'm pretty sure it's because it was shorted a lot. I've already removed my risk and have 25 in the money calls on it still

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Chris what will AMC be at by Friday

red sox 777 posted...

It was a once in a lifetime buy at $4, a great buy at $20, and a good buy at $80. Yes, someone will eventually pay too much - maybe the people who bought at $158 yesterday - but until the short squeeze happens (that is, short sellers actually cover) that is a reason to buy the stock.

You are conflating results with good strategy. If you bet your life savings on roulette and it hits that doesn't mean you made a smart decision. I think everyone who bought in under $20 was smart and everyone after that has gotten lucky

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Sunroof posted...

Chris what will AMC be at by Friday

Dude

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You can answer too

Plum help me out. I have been clear i have a long position that is not about current price and I got on when my position was 60 cents and stock price was 40% of current. Right

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I cant keep track of what every person says, what their positions are, and when they got in. Its not hard to restate something.

I am the person who told everyone amc was good two weeks ago only for lopen to laugh at me.

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I think your best call was EVRI back when it was $2.

I still laugh at you! Right call wrong reasons.

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Lopen posted...

You look at pre-covid earning numbers for Gamestop vs Nordstrom and their stock price trends before Covid and you've got two completely different stories even if Nordstrom is running at a (very small) loss right now.

I just think it's disingenuous or ignorant to compare the two. People were humoring Gamestop going bankrupt before Covid. Nordstrom was not at any sort of similar risk. It had a bit of a down year in 2019 but it's still not even reached its pre-covid number yet. GME is meanwhile over 4x their 5 year high currently.

That's precisely why it is an apt comparison now. I see that Nordstrom had about double sales and double profit pre-COVID. But the big gap in stock price was because Gamestop was perceived as a bankruptcy risk before COVID. But I don't think they are a bankruptcy risk now. A share issuance of stock would take care of their debt problem. Yes, it might kill the short squeeze, but it would also take bankruptcy off the table.

Truth be told, I think bankruptcy may be pretty much off the table even without a share issuance. I think there's something really off about GME's share price pre-COVID. Feels like short sellers believed too much in their story, that it was the next Blockbuster and got ahead of where the business fundamentals actually were.

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masterplum posted...

You are conflating results with good strategy. If you bet your life savings on roulette and it hits that doesn't mean you made a smart decision. I think everyone who bought in under $20 was smart and everyone after that has gotten lucky

I mean you're free to think that if you like. I wouldn't call Chamath Palihapitiya lucky for buying this morning when it was at $81. I just don't see the crowd of FOMO traders playing a big role in GME - I do see them more in BB and especially NOK.

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I'm pretty sure Nordstrom had roughly double GME's revenue with less debt and less dead infrastructure overhead to clear out. I just don't really think they're comparable at all unless you're taking "ran at a loss post-covid" as your only criteria

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DoomTheGyarados posted...

Plum help me out. I have been clear i have a long position that is not about current price and I got on when my position was 60 cents and stock price was 40% of current. Right

Yep. Didnt agree with it at the time but I think it will work out for you now. I have a safer position than you but we directionally agree.

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https://gamefaqs.gamespot.com/boards/8-gamefaqs-contests/79261445

I have to leave for a few hours but made the topic early in case something crazy happens while Im gone.

And there's also the fact that Nordstrom doesn't need to reinvent their business paradigm to be competitive/relevant. They just need people to buy clothes at the same clip they were before a pandemic hit.

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Lopen posted...

I'm pretty sure Nordstrom had roughly double GME's revenue with less debt and less dead infrastructure overhead to clear out. I just don't really think they're comparable at all unless you're taking "ran at a loss post-covid" as your only criteria

Most of GME's value lies in the short squeeze potential and in the potential transformation under new management, neither of which Nordstrom has. Sure, I guess we are comparing apples and oranges so it isn't a great comparison.

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Lopen posted...

And there's also the fact that Nordstrom doesn't need to reinvent their business paradigm to be competitive/relevant. They just need people to buy clothes at the same clip they were before a pandemic hit.

That's why GME is surging. Because they are trying to reinvent themselves.

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Wow damn gamestop

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Exited 40% of my GME shares today. Glad I got some off at $149.90. I think risk has now been limited to the point where it's no longer a stressor. I know that what's been sold is now in the past and therefore not relevant to decisions about the future, but I can't help but think this way.

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So I bought 65 shares for $4.5K.

I just sold 20 for $3k when it hit $150

I think I'm just gonna be greedy af with the remaining 45 shares

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red sox 777 posted...

That's why GME is surging. Because they are trying to reinvent themselves.

Right. I'm saying reinvention while you have boatloads of debt and a bunch of baggage storefronts that don't work towards your new business model has negative value that imo outweighs the tread water at best revenue it had before. In a sane market that was pricing according to value that would be considered a high risk stock and be priced accordingly. NKLA is actually a decent comparison-- good idea with potential go make money but what we've seen is a detriment

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The hotshot new guy at gamestop actually makes me super nervous - while gamestop might have a future, it does not involve being at these insane prices. If they announce a stock offering, that could destroy the squeeze entirely.

I think the offering would be dumb - GME might be able to get money if there's actually buyers (or a company that will take shares as consideration for acquisition), but who would be dumb enough to take this deal? Accepting the shares will destroy the value of the shares.

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It wouldn't make sense to do a new offering when they just bought a significant ownership. The only reason I can think of is if there was some behind the scenes deal. Which I'm sure is illegal but probably happens a lot?

Anyway, I cashed out a little to get my basis back at 148, so now I'm ready to ride this up to 1,000. Friday/Monday look like the big days.

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How the fuck are people buying at this height

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The idea would be to issue the new offering to the shorts so that they can cover using those shares. I am envisioning the board feverishly working with their lawyers right now about how such an offering could work logistically and legally without causing the share price to plummet. I suppose if they offered, say, 10% of the current amount of shares in new shares, it wouldn't make that big a dent in the short squeeze dynamic. There would still be over 100% shorted. And 10% I think would pay off their debt in full or come pretty close.

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Nanis23 posted...

How the fuck are people buying at this height

once in a lifetime opportunity? potential to hit 1,000?


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The poetic justice of it is so great that I'm almost afraid it's clouding my judgment. The same shorts who bet on this company going bankrupt at $4-$20 end up paying $150 a share to finance that company's success. They become the ultimate bagholders.

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Ah uh.....GME is at $185 after hours. Does anyone know if you can get margin called after hours?

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Nanis23 posted...

How the fuck are people buying at this height

Forgive me, but I feel really good that you are saying this. You are the most prone to FOMO person here, so the fact that you're not buying is a great sign.

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red sox 777 posted...

The idea would be to issue the new offering to the shorts so that they can cover using those shares. I am envisioning the board feverishly working with their lawyers right now about how such an offering could work logistically and legally without causing the share price to plummet. I suppose if they offered, say, 10% of the current amount of shares in new shares, it wouldn't make that big a dent in the short squeeze dynamic. There would still be over 100% shorted. And 10% I think would pay off their debt in full or come pretty close.

This is a good idea for GME - they can directly charge a high price and if its lower than what the shorters would have to pay to settle those shares, its rational for them to do it.

but what about ME

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red sox 777 posted...

Forgive me, but I feel really good that you are saying this. You are the most prone to FOMO person here, so the fact that you're not buying is a great sign.

Lol
But I am probably wrong
The 1000 goal which sounded insane now spunds reasonable
Especially since Musk just tweeted...

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Omg hahahahhaa

Idgaf. Not falling for it! Not buying!

I have a feeling AMC is going to make me a shit ton of money <_<

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Good call getting off those sold 7s Lopen *pats self on back

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So what do you think happens if WSB gets shut down

Is -80% in one day possible

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Gamestop offering or earnings will be what collapses it tbh

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Nanis23 posted...

So what do you think happens if WSB gets shut down

Is -80% in one day possible

Last week, maybe. Not anymore. Elon and Chamath and probably a bunch of hedge funds are going to be long GME by now.

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Is there any way to know for sure if Citron really is shorting a stock they say they short?

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My 50 dollars in amc Is doing great

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Congrats on AMC guys.

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thanks

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Thank you Chris and Lopen.

I sold after hours. Made, by far, my largest gain. Made $11,700!!!!!!!

And thank you everyone else for keeping my head straight! I know youll say I should have held longer but the difference between 40% and 80% gain isnt that much when Im not spending this money.

Totally reasonable to sell at +40% in a day when there was no great news.

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It was an absolute mad panic selling this. My platform has extended hours through 5:30 EST only, and I noticed the after hours price at around 5:15. I was scrambling so hard to sell but didnt know how to! I was navigating the app, wasnt working. I tried calling Vanguard, lines are busy. I sprinted to my computer and logged on from there and looked EVERYWHERE and finally found out how to do it! At 5:27. Phew!

Yeah selling here is fine imo. But buy the dip tomorrow morning !!

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